The road was being constructed under Centre"s National Rural Employment Guarantee Scheme (NREGS) and is in the last inhabited area on the Line of Actual Control (LOAC).
The report is prepared by Leh Deputy Commissioner Ajit Kumar Sahu and it is yet to be submitted to the government.
According to the report, workers at the construction site were threatened by a group of people from had come from across the border, following which, the workers fearing for their life discontinued work at the site.
"The Chinese also constructed a road on their side but India did not object to that. There is a nullah which separates the LOAC and the proximity to Chinese land is so much that we can communicate to them," said Chering Dorjay, Chief Executive Councillor of the Ladakh Autonomous Hill Development Council.
When the construction work was going on Chinese shouted at the villagers asking them to stop the work, he further added.
Earlier last month, China was accused of incursions into the Indian territory and also of carrying out construction work along side Sino-India border without India"s knowledge, including a dam construction at the Brahmaputra River.